Strike Resources Limited (ASX:SRK) (Strike) has reached another important milestone in the development of the Paulsens East Iron Ore Project in Western Australia.
The company reported that the WA Department of Water and Environmental Regulation (DWER) has granted a second Works Approval under the Environmental Protection Act 1986 for offshore marine operations, principally related to the Category 58 bulk loading of up to 1.8 Mtpa (10,000 tonnes per day) of iron ore from a Transhipment Vessel to Ocean Going Vessels in a designated offshore anchorage area ~14 nautical miles from the Port of Ashburton in Onslow.
Strike received an earlier (landside) Works Approval from DWER in July 2022 to undertake Category 58 bulk loading and unloading of up to 1.8 Mtpa (10,000 tonnes per day) of iron ore from the Port of Ashburton.
The securing of these key regulatory Works Approvals in respect of the Port of Ashburton now complete all DWER approvals required for the commencement of export operations from the Port of Ashburton and are important steps in the Stage 2 development plans of Strike, which involve the export of up to 1.8 Mtpa of iron ore from its Paulsens East Iron Ore Project.
The Port of Ashburton is proposed as a longer term export solution for Strike given its far closer proximity to the Paulsens East Iron Ore Project (~235km) versus Utah Point in Port Hedland (~650km), leading to significantly lower trucking costs from mine to port.
The (marine-side) Works Approval is subject to a number of usual conditions relating to offshore transhipment bulk loading operations including compliance with aspects of the International Maritime Organisation (IMO) International Convention for the Prevention of Pollution from Ships (MARPOL), specifications for the operation of the Transhipment Vessel, environmental monitoring and established loading patterns to minimise the impact of dust generation.
About Paulsens East Iron Ore Project
Paulsens East is located ~235km by road east of Onslow (and Port of Ashburton) and ~650km by road south of Port Hedland in the Pilbara, Western Australia.
Strike has undertaken Paulsens East Stage 1 Production, involving the mining of surface detrital material and crushing, screening and Ore Sorter processing to produce Paulsens East Lump direct shipping iron ore (DSO) (grading 62% Fe), with road train haulage to the Utah Point Multi- User Bulk Handling Facility (Utah Point) at Port Hedland for export.
Strike is undertaking its Paulsens East Stage 2 Development, which will involve conventional open pit mining of the Paulsens East hematite ridge, ramping up to an annualised production rate of up to ~1.8 Mtpa, with road train haulage to and export (via transhipment operations) through the Port of Ashburton near Onslow.
Development Options for Paulsens East
Strike (25%) has also formed a Port of Ashburton Consortium with future iron ore producer CZR Resources Ltd (ASX:CZR) (50%) and transhipment services provider CSL Australia Pty Ltd (25%) to work with relevant authorities to secure approvals for the development of a five Mtpa capacity multi-user bulk loading facility for the export of iron ore from the Port of Ashburton.2
The current Works Approvals received to date allow Strike to commence its Stage 2 Development plans for Paulsens East as a stand alone operation or serve as a base for the Port of Ashburton Consortium to build upon the current approvals received by Strike to expand proposed operations up to 5 Mtpa with separate Works Approvals being obtained by the Consortium using the Strike Works Approvals as a precedent for proposed expanded operations.
Strike proposes to advance both development options in parallel to determine an optimal commercial outcome, both in terms of maximising operating efficiencies as well as minimising time to market for its Stage 2 Development plans for Paulsens East.
Paulsens East Iron Ore Deposit
Paulsens East consists of a three-kilometre-long outcropping high-grade hematite ridge (refer Figure 2), containing a JORC Indicated Mineral Resource of 9.6 Million tonnes at 61.1% Fe, 6.0% SiO2, 3.6% Al2O3, 0.08% P (at a cut-off grade of 58% Fe).
As part of the completion of the October 2020 Feasibility Study, part of the JORC Indicated Mineral Resource has been converted to a JORC Probable Ore Reserve of 6.2 million tonnes at 59.9% Fe, 7.43% SiO2, 3.77% Al2O3 and 0.086% P (at a cut-off grade of 55% Fe).
For further information please visit: http://strikeresources.com.au/
